Deposit Growth Slows & Number of Bank Branch Offices Decline (Kind Of)

On December 13, the FDIC released FDIC Quarterly¸ a quarterly comprehensive summary of the most current financial results for the banking industry.  Within this summary is a featured article titled “2018 Summary of Deposit Highlights: Deposit Growth Slows and Office Decline Continues.”

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FDIC Continues to Promote Bank Startups

On December 6, the FDIC announced actions to promote a “more transparent, streamlined, and accountable deposit insurance application process” to encourage the establishment of new, or de novo, banks.

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CFPB Poised to Have New Director Soon

Under the current administration the Consumer Financial Protection Bureau has been operating under the direction of Mick Mulvaney, who is also the head of the Office of Management and Budget. The Bureau is now poised to have a new director, Kathleen Kraninger, who many industry observers believe will be confirmed.

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Banks Report Record Profits, Agencies Propose Capital Requirements

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $62 billion in the third quarter of 2018, up $14 billion (29.3 percent) from a year ago. The improvement in earnings was attributable to higher net operating revenue and a lower effective tax rate. 

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2017 Community Reinvestment Act Reportable Loans Released

On October 25, the Fed Board of Governors, the FDIC and the OCC released the 2017 data on small business, small farm and community development lending reported by commercial banks and savings association as required by the Community Reinvestment Act (CRA).

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Are My Fair Lending Statistical Regression Results Meaningful?

Your fair-lending regression results indicate a statistically significant disparity… now what? In our last blog post, we discussed the importance of a common-sense approach to statistical analysis. One common error in statistical analysis is to assume that a result is practically meaningful just because a result is statistically different from zero. This in not always […]

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Understanding Statistical Significance

As fair lending analysis becomes increasingly technical, industry practitioners have had to familiarize themselves with the terminology of statistical analysis. Statistical significance is one of the most common and foundational concepts to successfully navigating these new waters. Moreover, it is a concept that, when misunderstood, may result in serious error.

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Community Banks and Small Business Lending

Community Banks are important economic cornerstones in many communities throughout the nation.  According to call report data, commercial banks with less than $10 billion in assets hold 17 percent of total banking assets in the United States but roughly 53 percent of small loans to businesses. From 2008 to 2017, the number of banks this […]

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Financial Sector Risk in A Digitally-Dominant World

In response to the changing risk landscape, the Depository Trust & Clearing Corporation (DTCC) published a whitepaper titled, “The Next Crisis will be Different: Opportunities to Continue Enhancing Financial Stability 10 Years after Lehman’s Insolvency.”

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Legislation Proposed To Expand The Community Reinvestment Act

On September 26, 2018, United States Senator Elizabeth Warren (D-Mass.) introduced the American Housing and Economic Mobility Act. Among other things, the legislation expands the scope of the Community Reinvestment Act (CRA), grants $500 billion in subsidies to homeowners and investments in low-income housing projects.

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